Working Capital includes which of the following?

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. Th

Mumz [18]

Answer:

The company should order 100 units to minimize total inventory cost.

Explanation:

Given,

Annual Demand, D = 2,000 units

Order cost, S = $20

Purchase cost = $40

Holding cost, H = Purchase cost x percentage of holding cost

Holding cost = $40 × 20%

Holding cost = $8

We know, the company should order the highest number of products with a minimum cost, and for that, the company uses economic order quantity. Hence,

Economic Order Quantity (EOQ) = $\sqrt\frac{2*D*S}{H} }$

EOQ = $\sqrt \frac{2*2,000*20}{8}$

EOQ = $\sqrt{10,000}$

EOQ = 100

8 0

3 years ago

An acquisition premium is the amount by which the price offered for an existing business exceeds the Select one: a. amount paid

MAVERICK [17]

Answer:

d. pre-acquisition market value of the target company.

Explanation:

An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.

An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.

Acquisition premium are usually recorded on the balance sheet as "goodwill."

8 0

3 years ago

Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356

NikAS [45]

Answer:

Missing word "a. What must the six-month risk-free rate be in Japan"

a. Spot rate = 1 US $ = 1.2377 Aus.dollar

Forward rate = 1 US $ = 1.2356 Aus.dollar

1.2356 = (1 + i Ad)

1.2377 (1 + 0.05)

0.9983 * (1.05) = 1 + i.Ad

1.048215 = 1 + i.Ad

i.Ad = 1.048215 - 1

i.Ad = 0.048215

i.Ad = 4.82%

b. Spot rate = 1 US $ = 100.3300 Japan Yen

Forward rate = 1 US $ = 100.0500 Japan Yen

100.0500 = (1 + i Ad)

100.3300 (1 + 0.05)

0.9972 * (1.05) = 1 + i.Ad

1.04706 = 1 + i.Ad

i.Ad = 1.04706 - 1

i.Ad = 0.04706

i.Ad = 4.71%

4 0

2 years ago

If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: Multiple Choice pays

REY [17]

Answer:

paid $.25 per share per quarter for the past year

Explanation:

A stock is ownership rights purchased by investors in a public company. Holders of stock are called stockholders and they are regarded as owners of the company.

Stockholders are paid dividends. Dividends are a proportion of a company's profits paid to shareholders.

If the stock's dividend is $1, it means it either paid $1 the past year or paid $.25 per share per quarter for the past year

8 0

3 years ago

Anna has worked for the Nutty Boys Nut Butter Company for several years now and was recently recognized as one of the company's

sammy [17]

A

Social media

Social media is so fun you can talk to who ever one to talk to

7 0

3 years ago